April 12, 2017 / 1:50 PM / 4 months ago

Volkswagen to build new SUV in Tennessee plant

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NEW YORK, April 12 (Reuters) - Volkswagen AG's top U.S. executive said the German automaker plans to build another new sport utility vehicle at its Chattanooga, Tennessee plant as demand surges for larger vehicles.

The world's largest automaker said in 2014 it planned $900 million to build a new SUV in Tennessee and VW will start selling its new seven-seat VW Atlas SUV in May. VW Group of America chief executive Hinrich Woebcken told reporters at the New York auto show the automaker also plans to build a smaller five-seat SUV in Tennessee but he declined to say when production will begin. (Reporting by David Shepardson, Editing by Franklin Paul)

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